How to Choose best between a Credit Union or bank

If you are interested in personalized service, localrelationships and best rates for which credit unions are popular. Then youprobably interested in how to find a credit union which suits you best. Andsince community banks sometimes also offerresembling benefits, so, you might also like to consider that also if unable tofind a credit union.

How one should think about deciding the place to deposit or keep your money with the best outcomes or benefits.

1. Fees and rates


Credit unions are non-profit, while banks are for-profitsentities this is a fundamental difference regardless of size.  That’s why credit unions typically offerbetter terms for savings and loans when you compare trends throughout the finance market.

In such situation community,banks & credit unions help to buck such trends to give some competition in themarket. Moreover, a recent study showsthat both community banks and credit unions are more likely to offercharge-free services than bigger banks.

TIP: If looking at cheaper rate don’t exclude small banks. Never forget to compare credit unions and community banks rates with other banks in your region to see which one is offering the best option for saving or checking account.

2. ATMs and Branches

In recent decades one of the primedrawbacks of small financial entities waslower branches and ATMs for customers.

But nowadays credit unions and community banks both areutilizing some innovative ways to facilitate their customers while competing for huge banks.

Some credit union and community banks offer low-charge and often free access to ATMswith shared networks. Moreover, some entities also offer worldwide free ATMtransactions by using AllPoint and MoneyPass networks.

TIP: If you intenselyuse personal banking in a routine thenyou must select an entity which offers widespreadATM network with low or possibly no ATM charges.

3. Customer service

For customer satisfaction, credit unions have long exceededcommercial banks. However, as membership increases, their lead decreases, atleast in comparison with small banks. A 2015 survey shows that credit unionsare only successful to get ahead only 1 point than local banks.

It should also be noted that in recent years, various onlinebanks have won over with their customer-friendly service along with transparentfee and rate.

TIP: Afterselecting your favorite institute, try to connect with customer service and seehow they keen are to solve your issue and about discussing the problem indetail.

4. Technology

Another thing to watch up for is that small entity probablynot being able to offer higher-endconvenient products like smartphone app or website.

However, nowadays third-party software can help to fill-up the gap by giving license to smallbanks and credit unions to give permission for using tools. Such a service member can help small institutes to deal withsuch type of issue easily.

5. Is your money safe with them

It’s a big question to ask yourself before selecting aninstitute to deposit your money. People generally show concern while keepingmoney at credit unions and small banks while thinking that it may not be safe.However, insurance covers you up no matter the size of bank or credit union.

Deposits within most banks and credit unions are insured by NationalCredit Union Administration or by the FederalDeposit Insurance Corporation.

Furthermore, a person will be limited to $250,000 perinstitute across all type of accounts within that specific entity.